Nvidia stock sinks 5% amid tech rout, report on China environmental guidelines

NVIDIA (NVDA) shares fell more than 5 % on Wednesday, as a new report suggested that Chinese environmental rules may affect the sales of the artificial intelligence giant in China. This decrease came amid a wider sale in technology shares on fears of an escalating trade war.

NVIDIA’s shares sank after the Chinese organizer of the Chinese organizers have informed the companies to use the database chips that meet the strict environmental requirements. The NVIDIA SIM cards, its processor, is compatible with the US export controls for the Chinese market.

In response to the report, a NVIDIA spokesman said: “Our products provide efficiency and great energy value in every market that we serve. With technology move quickly, the export control policy must be modified to allow us to provide the largest possible number of products as efficient in energy use, while continuing to achieve national security goals in management.”

This report comes amid the escalation of trade tensions between Washington and Beijing after the United States imposed an additional tariff on Chinese goods since president Donald Trump took office. Export restrictions on semiconductor technologies were also a painful point between the two countries.

Read more: Latest news and updates on Trump’s tariff

Also on Wednesday, TD COWEN analysts said that Microsoft (MSFT) canceled new data center projects in the United States and Europe, a step that fears the increasing investor that large technology has retracted the spending on artificial intelligence.

However, analysts said, “Positively to the third -party data center operators, our checks refer to Google (Goog) that is within the capacity of the backfilling that Microsoft has moved away from international markets, while our checks indicate the Meta ability in the United States” in the United States “.

The analysis follows a note from TD Cowen in February, saying that Microsoft recently canceled an unspecified number of data center rent.

NVIDIA led “Seven Magnificent” stocks on Wednesday, which cut a new recovery in this sector after it entered the S&P 500 (^Gspc) and NASDAQ (^IXIC) a correction area earlier this month.

Technology shares have led a broader sale in the market this year as investors weigh the Trump administration’s tariff policy on the economy.

Read more: How do you earn Nvidia money?

Fears of excessive value in the NVIDIA intelligence trade were sent in late January after the Chinese company Deepseek launched Chatbot, according to what was stated with less resources than its competitors in the United States.

Renewed fears of excessive artificial intelligence trade appeared earlier this month after the expenses of the Chepsy Maker’s revenue (MRVL) failed to persuade investors, and semiconductor shares decreased.